Open Text swings to quarterly income; revenue rises

RuthMantell

SAN FRANCISCO (MarketWatch) -- Open Text Corp.
OTEX, +4.06%
after Monday's closing bell said it swung to first-quarter net income, as revenue rose and operating expenses fell, of $7.3 million, or 15 cents a share. During the same period in the prior year, the net loss was $12.9 million, or 27 cents a share. Adjusted quarterly per-share income rose to 24 cents, matching Wall Street's estimate, from 13 cents in the prior year. The software provider said quarterly revenue rose to $101.2 million from $92.6 million in the prior year, while analysts polled by Thomson First Call had expected $99 million. As part of Open Text's integration with Hummingbird, the majority of which will be completed during the second quarter of fiscal 2007, Open Text said it is reducing its worldwide workforce of 3,500 people by 15%, and 60% of the reductions have already been completed with the remainder expected by the end of November. Open Text is also reducing 38 facilities by closing or consolidating offices in certain locations.

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